National Mineral Development Corporation (NMDC) today conducted e-auction for 76,000 MT iron ore from its Chhattisgarh mines. Quantity offered comprised of 24,000 MT calibrated lump ore, 16,000 MT ROM, 16,000 MT iron ore lump and 20,000 MT iron ore fines.
According to market sources report to SteelMint, Indian steel mills have actively participated in booking DR-CLO and fetched a premium of around INR 1,020/MT to INR 5,312/MT (basic) against base price which was INR 4,292/MT (basic). As per sources, mills like JSW Steel and Essar have actively booked cargoes. Mills have actively booked DR-CLO amid less availability in the market.
Fines offered from NMDC’s Kirandul mines received bids at the base price however for fines offered from Bacheli siding fetched bids high by around INR 100-130/MT.
Product description of NMDC auction conducted today:
| Product | Grade | Size(mm) | Qty(in MT) | Location |
| DR CLO | Fe 67% | 10-40 | 24,000 | Bacheli Mechanical Railway Siding |
| ROM | Fe 65.5% | 10-150 | 16,000 | Bacheli Mechanical Railway Siding |
| Lump | Fe 65.5% | 6-40 | 16,000 | Kirandul Mechanical Railway Siding |
| Fines | Fe 64% | (-)10 | 12,000 | Bacheli Mechanical Railway Siding |
| Fines | Fe 64% | (-)10 | 8,000 | Kirandul Mechanical Railway Siding |
Source: SteelMint Research
This month on 10th Sept NMDC had increased iron ore prices. The miner has increased Baila fines prices by INR 150/MT, lumps by INR 200/MT, ROM by INR 190/MT and DR-CLO by INR 370/MT. Strong demand, tight supply amid monsoons and increased prices of pellet and semi-finished steel have pushed up domestic iron ore prices.
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